Hotel Staffing Shortages and the Impact of the Great Resignation
Albert BarraMay 10, 2022 · 6 min read
Many of these departures can be attributed to the layoffs that occurred during shutdowns due to travel restrictions. Another factor is vaccine requirements at many companies: resignations are the result of employee resistance.
Several employees decided to change industries and upskill due to the uncertainty associated with the hotel industry. In short, people need more stability, and the volatile tourism industry, despite experiencing recent surges, is anything but reliable.
The age group with the highest number of departing employees is Millennials. Employees between the ages of 30 and 45 experienced the highest turnover, whereas this distinction generally belongs to the 20-to-25 demographic.
The impact of losing this demographic
Why is this age group leaving in such high numbers? According to the data, 21 percent of millennials reported changing jobs in the past year. They show even less inclination to remain in their current roles. What is behind such a high number of departures? This is particularly damaging to the hotel industry, as some of the most vital employees within hospitality companies belong to this age group. In short, millennials demand relevant, meaningful and challenging work, along with high pay and a sense of fulfilment. In the hotel industry, retention rates are higher among older demographics. Millennials are not afraid to speak their minds, and they certainly do not hesitate to share the truth about employers on social media platforms. If they feel there is a poor work-life balance, people will hear about it. In addition, low levels of compensation have also led millennials to leave in large numbers. They are looking for managers who challenge them but also care about their wellbeing and the quality of the work environment. Collaboration among colleagues is also essential to them: they want a healthy corporate culture and a certain level of pride in their organisation. Personal development ranks highly on the list, as training and educational opportunities mean a great deal to this age group. The significant impact of losing a large number of employees is damaging enough. However, in the hospitality industry, the millennial demographic includes most of the key players. We are talking about managers, directors of sales, sales managers, financial planners and many other roles vital to the day-to-day running of hospitality operations. Losing employees in these types of roles creates the following challenges:- A lack of leadership can ultimately lead to a lack of direction in any business experiencing these losses.
- A lack of an efficient hiring manager
- This age group also makes up a large part of the food and beverage team. This industry was already suffering alongside the hotel sector. Together, the two have seen disastrous results.
Hope for retention
Is there any hope of retaining some of these employees? Naturally, you will not be able to keep them all, regardless of age group. However, what you can do is improve the health of your work environment. Make a point of listening to your team members. When you foster a healthy relationship between employees and management, it can give you a genuine advantage in retaining new employees and recruiting the industry’s most talented people. Another critical element in reducing the sudden departure of hospitality workers is to place renewed emphasis on performance management in relation to employee goals and growth.Focus on satisfaction, not new hires
The satisfaction of your current employees is now the bread and butter of your organisation. During these turbulent times, your long-serving employees are among your most valuable assets. Rather than focusing on hiring a handful of newcomers, focus on keeping your current team happy. Send a clear message that demonstrates your focus on their goals and growth, both inside and outside work. Helping them progress and investing in teaching them new skill sets shows that you plan to keep them for the long term. Show the level of compassion needed in an industry where, not so long ago, employees were sidelined during shutdowns and many did not know how they would pay their rent or bills. Organisations must also exercise caution when choosing not to hire and instead focusing on retaining current workers. When this happens, you are most likely giving your current employees extended hours. For most people, this is not necessarily a bad thing, as it results in higher pay. However, after a while, employees can become overwhelmed by the workload or burned out by repetition. It is important to provide them with a healthy work-family balance. One of the most important considerations today, if you ask most employees, is their mental health and wellbeing. The top three areas of concern for the 20-to-35 age group are as follows:- Work-life balance
- Supporting physical and mental health
- Supporting development and helping employees become the best version of themselves.
New hires
When it comes to new hires, the development stage is crucial to retention. Leadership programmes that provide new employees with a certain level of guidance should be adopted. This not only benefits new team members, but also increases engagement and promotes loyalty to your organisation. The current battle for top talent in the industry is fierce. Due to recent financial difficulties, increasing pay is not a realistic option. Any strategy that includes retaining and recruiting new talent must be data-driven, as this gives all organisations an advantage in making the most informed decisions. Regardless of the specific strategy, owners must begin making a greater effort to combat the pitfalls of the Great Resignation. It has been estimated that the sharp decline and departure of employees can cost an owner up to 30% of their revenue over the course of a year. This is a major negative outcome for something that could be remedied through a few simple strategy changes and greater attention to human resources. Taking one final look back, the most effective ways to proactively address the Great Resignation include:- Improving manager-employee relationships
- Demonstrating a renewed focus on employee wellbeing and personal goals.
- Enhancing the overall collaborative workplace environment.
- Giving employees the opportunity to learn new skills
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